ENGINE: Americas Bunker Fuel Availability Outlook
Fuel oil inventories are growing on the US Gulf Coast as refiners have boosted production. Gulf Coast inventories added 872,000 bbls to reach a seven-week high of 18.59 million bbls on 9 April, according to the latest data from the Energy Information Administration (EIA).
Refineries along the Gulf Coast boosted their fuel oil output through February and March, with production peaking at 100,000 b/d in week to 4 April.
Prompt deliveries of VLSFO and LSMGO are available in Houston and New Orleans, while Corpus Christi continues to have tight availability of prompt supplies of both grades. Corpus Christi’s VLSFO price is similar to that in New Orleans, but considerably higher than in ports in the Houston area.
Supply is expected to be back at the Galveston Fairway Anchorage when a drydocked barge returns to operation in two weeks. The barge will only hold LSMGO, however, and drop VLSFO for the time being.
Availability has improved in several Caribbean bunker locations, including Bahamas’ Freeport, where all grades are available for prompt deliveries now, as well as in St. Eustatius and Trinidad.
Balboa and Cristobal have good have readily available VLSFO volumes to deliver and competitive pricing with Houston at the moment. LSMGO and HSFO380 grades remain significantly more expensive in the Panamanian ports than in Houston.
VLSFO is tighter in Rio de Janeiro, and its price premium over nearby Santos has widened some.
Guayaquil and other Ecuadorian ports have limited volumes as suppliers await replenishment. Manta has some VLSFO to supply, but availability has been tight for several weeks. Ecuadorian VLSFO prices have risen sharply and flipped to slight premiums over Peru’s Callao further down the South American west coast.
Source: ENGINE (https://engine.online/)